UPDATE: Stephens Resumes Coverage on Parker Drilling on Positive Outlook, Focus on Growing Markets
In a report published Thursday, Stephens analyst Matt Marietta resumed coverage on Parker Drilling Company (NYSE: PKD) with an Overweight rating and $8.00 price target.
In the report, Stephens noted, “We are resuming coverage of PKD with an Overweight (Vol.) rating and an $8 price target. We believe the industry-experienced management team now in place, as well as a corporate re-focus on strategy in growth markets and more reliable, economically focused decisions currently provides an investment opportunity in shares of PKD. The Company is making strides in its core, domestic rental tools business by focusing on growth in the offshore GOM markets where activity remains robust (as seen in its barge dayrates and utilization metrics). In its International Drilling business, PKD continues to fine tune its geographic footprint, which we believe will generate cost savings and customer focus through gains in region specific scale. Furthermore, as a result of increased investment in the newly acquired international rental tools business, we are modeling margin expansion to take place as profitability capture is likely to occur through fewer sub-rental needs.”
Parker Drilling Company closed on Wednesday at $5.82.
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